Compuware makes changes

January30, 20Oo
CRAIN'S DETROIT BUSINESS
STtlCK
TIrunG
AREAPUBLICCOMPANIES
NEWSABOUTDETROIT
changes
makes
Compuware
decline
3QreYenue
following
Bv Aunnpw DTETDERTcH
CMI N'SDETROITBUSIN'SS
Compuware Corp. said it's making
changes desigled to imProve sales
without layoffs after revenue fell
from $330.5 million in the third
quarter of 2005 to $305.9 million
this year.
Peter Karmanos Jr.. chairman
and CEO of Compuware (Nasdaq:
CPWR), also said the comPanY
plans to hold
sales staff more
accountable for
revenue and that
the way they are
paid will reflect
the change in attitude.
Further. he
said, the company is bringing
back some of its
top sales staff from the 1990sthat
"have matured and are far more
senior" along with someof its best
performers from Europe.
The goal, he said, is to motivate
sales staff and imProve revenue
and earnings without resorting to
layoffs.
Consulting
World
Class
atLittletoNoCost
"I'm doing what anY good CEO
does,"Karmanossaid ThursdaYin
a conferencecall with analysts,investors and media. "I'm going to
try and hold their pay as low as
possibleand give them as much reward as possibleon the uPside."
Karmanos said compensation
would be an issue at its uPcoming
planning conference.
"The days of living comfortably,
if you're a salesperson,on Your
basepay, are over," he said.
The company rePorted net income of $37.7million or 10 cents a
share on revenue of $305.9million
for the quarter, which endedDec.
31. That compareswith $41.7million or 11 cents on revenue of
$330.5million for the samePeriod
in 2004.
For the first nine months of its
fiscal year, Compuware rePorted
net income of $86.5million or 22
cents a share on revenue of$895.9
million, comparedwith about $49.8
million or 13 cents on revenue of
about $913million for the samePeriod a year ago.
Under the new organization,
Hank Jallos has been appointed
president and COOof ComPuware
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Products.In the role, he will be responsible for sales and mainte'
nance of all Compuwareproducts.
He had been corporate executive
vice president.
Bob Paul will retain his position
as leader of Compuware'sCovisint
division but with the new title of
president and COOof Coqtpuware
Covisint.
Tommi White has been appointed president and COO of Compuware Services. She will be responsible for the sales and
delivery of all services. She had
beenCOO.
David Rudow, senior analyst at
PlperJaffray& co. in MinneaPolis,
said the changesare welcome and
he expectsto seeresults starting in
the first quarier offiscal 2fi)7.
Compuware's fiscal year ends
March 31.
"While we believe the execution
problems are repairable, if these
problemscontinue beyondthe new
few quarters, we believe the company will need to explore alternative ways to unlock shareholder
value." Rudow said.
Andrew Dietderich: (313) 4460315, ad.intderich@rrain. com
EnnNINGS
Inc.
AninMerltor
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17,2006
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LearCorp.
Factto know:Ankeny is the residentexperton all things Detroitand
experience
has morethan 40 yearsin the newsbusiness,withextensive
coveringthe courts,the law and localgovernment.
in'com; (3 13 ) 446-0404
contactinfo:ban keny@cra
DwruEnus
2004
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Revenue........................$8,318,000
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Corp.
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E a m i n E i s p e r s h a r e : . . . . . . . . . . . . . . . . $ 1 . 0S51 ' 2 3
2004
2005
Dec.31
3rdQuarter
..................5305,905,000
S330,5:t5,000 12 months:
Revenue
$27,769,000
....,...............S31,081,000
Revenue
CDB'SIOP PERFORMERS
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about:Cityof Detroit,
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Netincome..................S4,420,000
s5,217,1X10
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38.09
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24'00
DearbornBancorpInc.
42.44
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HandlemanCo.
39.74
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Source:BloombergNews. From a list of publiclyowned companies with headquarters
in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading
at less than $5 are not included.